Australian Hotels Association (WA) CEO Bradley Woods says under the agreement accommodation businesses in Australia are still prohibited from offering the lowest rates possible on their own websites.
"This is a blow to competition and the public who should have access to the best possible deals when searching for accommodation online."
"It seems like it’s back to the 70s for the ACCC, with hotels only able to offer cheaper prices than an Online Travel Agency (OTA) over the phone, over the counter or via a loyalty club."
"We recommended and advised the ACCC that it should have insisted that OTAs allow hotels to set their own rates online," said Woods.
Smaller hotels are particularly vulnerable to the global OTA duopoly.
Booking.com and Expedia command around 80 per cent of the online travel agency market in Australia."This deal is not fair for Australian consumers or hotels, especially smaller businesses in regional Australia that are struggling to be competitive," said Woods.
The AHA and Tourism Accommodation Australia (TAA) will not be letting this matter rest and will be meeting with representatives of the Commonwealth Government in Canberra this month to protest this agreement by the ACCC.